How much is your credit card really costing you

Most people do not give much thought to how much the use of credit cards really costs. While you may think you are aware of the costs of credit, there are many hidden fees and charges that often go unnoticed by consumers until it is too late. If you do not keep a very close watch on your credit card fees, you could end up paying hundreds of dollars per years without evern realizing it. If you are trying to stay within a budget, hidden credit card fees can be a real drain on your finances.

Here are some of the most common types of credit card fees and what you can do to avoid them:

Your grace period may seem to be a period of time in which you can pay your bill past the due date without accruing additional interest of fees. While this may have been true in the past, credit card companies are making it more difficult to pay your bill late without any extra charges. In previos years, if you charged the maximum on your credit card but were able to pay your balance in full before the end of the grace period, it was like a loan extension that cost you no additional money. The majority of credit card comanies have reduced the grace period to less than 25 days and some have eliminated grace periods all together. A purcahse you make at noon today will usually begin accruing interest immediately. Check the fine print on your contract with the credit card company. If you find that you have no grace period before interest starts to build, consider switching to a more user-friendly card.

Late fees can really add up. Make certain you know what the late fees are for your credit card and under what circumstances you can be charged. Late fees have increased dramatically over the past several years. This fact combined with a reduction in your grace period means a hefty profit for credit card companies. Whenever possible, send your payment the very day you recieve your credit card statement. There are several reasons to never make a late payment on your credit cards. The most obvious reason is that you will avoid any late fees. Next, a late payment can be reported to the major credit bureaus, leaving a bad mark on your credit report. There is also the possibility that by making one late payment, your interest rate can be raised permanently.

You may not be aware that even with a single late payment, your credit card company can, and most likely will, increase your interest rate. One late payment gives your credit card company the right to raise your interest rate to the maximum allowed by law. This does not just apply to your credit cards. Any late payments reported on your credit report can give all your lenders the right to raise your interest rates. A late payment means higher risk to a lender and you may find that several of your interest rates go up due to a pate payment listed on your credit report.

Keeping your interest rates low and avoiding hidden charges and fees is the best way to save money over the long-term when it comes to your credit cards. Managing your credit is one of the most important factors in your overall finaincial stability. Make sure you understand completely the terms and conditions of your credit cards and all other credit accounts you may have such as your car loan, mortgage, and any other revolving accounts. By making your payments on time, you will save hundreds or more dollars each year in interst and other fees.

Cheap credit cards - are they a myth

Cheap credit cards come in many varieties. In addition, there are many factors a consumer needs to take into consideration when determining whether or not a credit card is truly cheap.

The first factor most people consider when looking for cheap credit cards is the card's Annual Percentage Rate (APR). The APR determines the amount of finance charges that will be added to the account if the balance is not paid in full at the end of each billing cycle. Therefore, the lower the APR, the less finance charges the cardholder will have to pay.

When comparing low interest credit cards, it is also important for the cardholder to look at how finance charges are determined. Most credit cards use the Average Daily Balance method. Other credit cards, however, use the Two Cycles Average Daily Balance method. With this method, finance charges are determined at two different times during the billing cycle. For those that carry a balance on their credit card from month to month, the Two Cycles Average Daily Balance method is more expensive. Therefore, a low interest credit card may not actually be the least expensive card to use if it uses the Two Cycles Average Daily Balance method.

Some cheap credit cards have an annual fee in exchange for offering a lower interest rate. Depending on the interest rate, this annual fee just might be worth paying. In this case, it is necessary for the cardholder to be aware of his or her spending habits. In this way, the cardholder can determine whether or not the money saved with the low interest rate will pay for the annual fee. If the savings gained by the lowered APR will not pay for the annual fee, it is not worth paying to have membership to the card.

The grace period associated with a cheap credit card is also an important consideration. The grace period is the number of days the cardholder has after making a purchase before finance charges are assessed to the card. Twenty-day grace periods are common in the credit industry. The longer the grace period, the less money the cardholder will ultimately pay in finance charges. A cheap credit card with a low interest rate is not worth it if the finance charges begin to apply immediately after the purchase. The money saved by a low interest rate will soon be lost as finance charges build each day.

Some cheap credit cards even offer reward programs. Generally, however, low interest credit cards that also have a reward program are reserved for those that have good or excellent credit and will typically have an annual fee.

Even those reward credit cards that do not necessarily have a low interest rate can be considered to be cheap cards, mainly because the value of the rewards earned can be greater than the money spent on annual fees or finance charges. Those that pay their credit card balance in full at the end of each billing cycle, for example, may not be so concerned about the interest rate of the credit card. In this case, cheap credit cards would be those that offer discounts or special reward program that make the credit card pay for itself.

In general, credit cards come with a number of perks. These benefits can include purchase protection, extended warranties, roadside assistance, and travel insurance. When sorting through cheap credit cards, consumers also need to take these benefits into consideration. Those that will never utilize these perks will probably just be concerned with finding a low interest credit card with no annual fee. For others, however, it might be a better idea to pay a little more in order to gain the added perks. Similarly, if the consumer has several cheap credit cards with the same available interest rate to choose from, it only makes sense to go with the one that offers the greatest number of added benefits or that has benefits most meaningful to the person's lifestyle.

Free copy of your credit report

As of Jan 1, 2004 according to FCRA Act, all credit bureaus will be required to give out one free copy of credit report per year. However they are not required to give you a free copy more than one time in a year.

A free copy of credit report will help protect you and your family from any financial crisis. If you haven’t recently seen a copy of your credit report, it would be advisable you obtain a copy of your credit report as quickly as possible. It is always recommended to check your credit report at least once in six months. Now days in just a few clicks you can have access to your credit report online. Getting a free copy of your credit report has no obligations and is absolutely risk free.

You are entitled for a free copy of credit report if

•You are entitled for a free copy of credit report if you have been denied credit

•You are unemployed and intend to apply for employment within 60 days.

•If you are a public welfare assistance

•If you report has been revised

•If you credit report contains inaccurate information due to fraud or theft

To obtain a copy of your credit report you need to provide the following information in writing

•Your personal information including you name, address, date of birth, telephone number and so on.

•You also need to submit your previous residential address if any especially if you need to obtain your five year credit history

•You also need to submit your social security number

•You also need to provide a signature at the end

Safeguard your credit (Tip that can help)

Shred any documents that show your credit information, social security number or driver’s license number before throwing them away.

Is your credit card good enough

Your credit card speaks for you and what your spending ability is. How much can you spend and how much have you already used up from your credit limit? All this can be found out using this rectangular piece of plastic. Certain stores have a facility wherein they use a voice authentication system with a touch-tone phone. The most common system though is the magstripe-card swipe terminal where you swipe the card at the terminal through a system of Electronic Data Capture – EDC. There is also the option of using your credit card at virtual terminals on the Internet, where you can make your purchase online and pay for it online as well.

When you are at a store and you make a purchase, the cashier at the counter swipes your credit card on the magstripe reader and the EDC software dials a certain telephone number, which is normally an organization that will give them the go-ahead signal on a purchase request. This company is given the name of the store, the credit card number, the expiry date and the credit card limit and all this within seconds of swiping it. Once done, you sign on the bill and voila! The purchase is yours.

The power of owning a credit card is just that. Choose, swipe and sign and it is all done. Your signature at the back of the credit card is used to verify your authenticity or if it is a photo credit card then it of course has your photograph to ensure that it is not misused. Now, though there is an innovative application, which uses the highest form of cryptography. The smart card as it is called has a microprocessor in the credit card. This way, the user of the credit card will have to identify him every time he uses the card just as you would at an ATM dispensing center.

With a smart card, you will have to verify the card and the card will verify the user as well. This will ensure complete authenticity. Once the card and the card reader establish mutual confirmation, then the transaction is carried out in such a manner wherein no one, including the store cashier or the card owner himself can do anything at all about getting any information about the credit card purchase. This is a totally fraud-proof system. Apart from a PIN the user will know nothing else.

Smart cards first came into being in France in 1984. It is in fact replacing the regular plastic cards that we use in the United States now and Visa and MasterCard are very much in the league of changing the way we use credit cards now on. The smart card enables you to use it as a debit card as well as a credit card. You could also use it as a reloadable account, where you can spend from a certain stored account.

So this way, its enhanced memory enables you to use it in many ways much more advanced than the magnetic stripe cards that we have been hitherto using. This way, you need own only a single card instead of stuffing your wallet with a number of credit cards. The smart card today is not so widely accepted over various countries and establishments, though it is expected to take over the world soon.

Refinance home equity line of credit - options for paying off a line of credit

Refinancing a home equity line of credit can save you from rising interest rates. They can also help you develop a payment schedule that fits your budget needs. And if you consolidate your home equity loan with your first mortgage, you can save even more on rates.

Options For Paying Off Your Line Of Credit

A home equity line of credit with its open terms and rates, makes it an ideal candidate to refinance. The easiest option for refinancing is to roll over the loan to a second mortgage. You can choose fixed or adjustable rates and terms. Closing costs will also be minimal. The other choice is to combine your home loans into one mortgage. This will qualify you for lower rates than if you just apply for a second mortgage. However, if you already have a low rate mortgage, you could lose out on closing costs and interest charges. If you are thinking about doing a total mortgage refi, it’s best to compare numbers on your financing options. Factor in how long you have left on your original loan, future interest charges, and possible savings.

Be Choosing With Your Lender

Your current lender will automatically strive for your business, but take the time to look at other offers. The best way to make comparisons is to ask for loan quotes. These loan estimates should be based on preliminary information supplied by you. Don’t allow lenders to access credit report; unless you want to see your score go down. With loan quote numbers, look at the fine print. Compare the APR for overall loan costs, but also look at the closing costs and rates separately. If you don’t plan on keeping your home or loan for more than seven years, you don’t want to pay a lot at closing, even for a small reduction in rates. You won’t recoup the cost in such a short time.

Don’t Delay Refinancing

Once you find a favorable loan offer, start the application process to secure the rate quoted. With online applications, your loan can be processed in less than two weeks with paperwork complete through the mail.

Instant approval credit cards are they credit builders

Many people today have heard about the "instant approval" credit cards, but may not understand exactly what they are. Instant approval is the method used by banks and credit card companies to take your application and instantly make a decision based on data they get from your online credit report. It is different from traditional credit card applications because you are either approved or rejected as soon as your application is submitted.

Instant approval is a method that is different from instant decision. When a bank makes an instant decision, this means that a certain period of time is given to the credit card company to decide if an applicant is approved. They will typically do a detailed background check, and it may take days or weeks for them to decide if applicants are approved. Many people may have also heard of the term "instant credit."

Instant credit means that in addition to being approved immediately, you are also given a temporary credit card that allows you to make online purchases. Instant credit isn't used much by the banks today due to the many fraudulent charges that were made after they begin offering it. Instant approval gives banks a reasonable amount of time to determine if an applicant is a good candidate.

Instant approval applications are just as secure as traditional applications that are sent through the mail. If you apply for instant approval credit cards online, make sure you go through banks and credit card companies that offer the highest level of internet data encryption. In most circumstances, using secure online instant approval services are much safer than sending applications through the mail. If your application is approved, you can expect to receive your card in about a week. The delivery time will vary depending on the company you use.

In most cases, instant approval means that the bank will give you a temporary approval based on your online credit information that will keep you occupied while they do more detailed research. The banks will do additional research to make sure your online data is accurate. While many people who apply for instant approval credit cards think they will immediately be issued a card, this is not always the case.

It is also important to make sure you have decent credit before applying for an instant approval credit card. Most decisions are made based on the FICO score, and if you are declined you credit score could be lowered even more.

History of credit cards

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Credit Cards have become an absolute necessity so much so that we take them for granted. A number of money experts have already slated the paper currency as a dying dinosaur. But have you ever wondered where did this plastic money of credit card come from? What is the history of credit cards? Whose genius was it anyways?

Though the idea of "have now, pay later" existed since the 1700s but it was only in the early 20th century that the banks started taking credit protection in form of overdrafts. In 1914 Western Union gave its customers a metal card allowing them interest free deferral payments. This gave their clients a freedom to spend beyond their means. However, the idea of actual credit card did not strike 'father of Credit Cards', Frank McNamara until he forgot his wallet back home while going out for a dinner with friends.

This embarrassing moment was just too much for McNamara. Thus, he created the "Diner's club card". It was initially a businessmen's card for dinners and retails purchases while traveling but by the end of 1950 it had become a phenomenon. A national frenzy that began with just 200 customers who could use it in 27 restaurants, it swelled to such massive size that it spread over the whole USA with 20000 customers and more varied kinds of retailers subscribed to it as credit providers. The Diners card charged seven percent for each individual transaction with card subscribers paying a three-dollar annual fee. Stores and service companies readily extended this facility. They could benefit from it since the customers spent more than they would if they had to pay the cash up frontally.

The General Petroleum Corporation was one of the first companies to offer an actual credit card that allowed for fuel and automotive repair purchases to its employees. They could use their card and make payments towards these things with portions of their paychecks.

The monopoly of Diner's club was short lived. McNamara withdrew his share of money from the company in 1952. Very soon American Express launched its similar yet more generalized credit card and Bank of America came out with BankAmericard (now called VISA) in 1958. Master card came up in 1966. These new market players overpowered the old titan.

While McNamara created credit cards, John Biggins is acknowledged as the inventor of the bank credit card. He worked at the Flatbush National Bank of Brooklyn in New York. In 1946, Mr. Biggins developed the "Charge-It" program in which local merchants who accepted the card would deposit sales slips into the bank and the bank billed the customer.

Credit cards add that bit of security in your life

Credit cards do add a bit of extra punch to your life. Nowadays you can apply for zero interest credit cards and pay all your bills and expenses with the card and then pay back within the stipulated time frame and pay no interest too. There are many that offer you low interest credit cards but they come along with a host of extra benefits and surprising offers. Your credit card could actually save a lot of money for you. Sounds amazing well, apply for a credit card and then reap the benefits and see how your credit card also saves money for you too.

You can get to your nearest bank or any of the financial institutions that offer credit cards. Give in your credit card application, read carefully what the credit card has to offer. Different credit cards offer you different kinds of benefits and offers. You need to choose the right one for yourself. Most credit cards charge you a nominal annual fee but generally the offers and discounts they offer hugely overweigh the annual fees that you have to pay to keep the credit card active. There are many low interest credit cards and they are very popular in all parts of the world.

There are a host of services that are offered by the credit cards. From exclusive lounges to airports and free car wash at the gas station while you fill your car up, credit card holders do really enjoy a host of free services just by making a credit card transaction. Imagine if you had to pay for the services, how much money it would have cost you. Well, is that not a saving for you? Zero interest credit cards really ease up your expenses for you. Buy something during Christmas and you can easily pay back the next month and no interest is charged, it is truly like borrowing money from a friend.

Before you fill up your credit card application, do take time to find out about all the services and billing dates that the credit card has to offer. Some of the credit cards also offer low interest credit and easy installments pay back. There are many that do not charge any fees and also offer you zero installment credit. It is for you to decide which kind of credit card would be ideally beneficial for you. You can take the help of the customer service personnel of the credit card offering bank or financial institute to access your needs and suggest you the best credit card that would allow you a comfortable credit and at the same time extra benefits for you.

Fill in your credit card application today and feel the comfort of having a zero interest credit card or a low interest credit card. Whatever suits your need a credit card would really add a pinch of security into your life. Start using credit cards right away and experience the fun of not having to carry cash and enjoy the free benefits and offers that come along with all credit cards.